It leaves no room to avoid the contribution of finance in research & development, the main catalyst of product innovation (Dunk & Kilgore 2004). With a ground breaking innovation from Nike’s R & D laboratory, it has presented the world football the extra pace with the invention of Mercury Superfly – Nike Flyware, a 7 layer carbon-fibre outsole and dual density stud (ICIS Chemical Business 2008). Weighing just 230 grams with Mercurial vapour V feature is an ultra thin Teijin synthetic upper to adjust with shape of foot for ultimate comfort.
And the carbon layered outer connects directly with the studs to tune the acceleration for a faster race (NIKE, INC. 2009). Getting into the micro issues of the product, they are the features that make the UPS of the innovated product. These features indicate the scientific approaches taken by the Nike’s R & D to make the product stand out of the crowd. This shows the intimate involvement of the development department with the innovation in a company.
Especially in case of product innovation in the company, development generally scales more than 70 point; which makes it successful in the market (Mairesse & Mohnen 2004). An innovation can be the out come of any of the internal factor, but it is the finance that plays the role of the father figure among all the internal factors of a company. Any plane of the promotional department, marketing strategy or the scientific breakthrough can not even take off with out the financial support (Hoffman 2007).
Thus, the campaigns in South Africa, innovation grant for public education or the scientific advancement; all had their respective budgets to report the finance department, which has been the life line of the projects time to time. Finance as the internal factor can not be ruled out for a successful innovation in a company, which is applicable to Nike too. Bibliography BNET 2007, Research and Markets: the Nike SWOT Framework Analysis is out Now, Business Services Industry, viewed 30 May 2009, <http://findarticles. com/p/articles/mi_m0EIN/is_2007_Oct_12/ai_n27405735/>.
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Theory and Practice, vol 17. BI Norwegian School of Management 2008, Statistics software, LISREL, viewed 30 May 2009, <http://www. bi. no/Content/Article____57697. aspx>. CSRwire 2009, Nike Announces New Nike School Innovation Fund; $9 Million, Multi-Year Investment In Schools, CSR Press Release, viewed 31 May 2009, <http://www.csrwire. com/press/press_release/24968-Nike-Announces-New-Nike-School-Innovation-Fund-9-Million-Multi-Year-Investment-In-Schools>. Dunk, AS & Kilgore, A 2004, Accounting and Finance, Financial factors in R&D budget setting: the impact of interfunctional market coordination, strategic alliances, and the nature of competition, Blackwell Publishers Ltd. England. GBS 2008, Core Competence Award Commended (2008): Nike Inc, SA, The Commended Program, viewed 30 May 2009, <http://www. gbcimpact. org/itcs_node/0/0/award/722>.
Hoffman, S 2007, The Law & Business of International Project Finance, 3rd edn, Cambridge University Press. ICIS Chemical Business 2008, Latest materials improve sportswear performance, Making waves, viewed 31 May 2009, <http://www. icis. com/Articles/2008/08/04/9144388/latest-materials-improve-sportswear-performance. html>. Jiang, W; Lin, W; Yan, T & Tian W 2006, ‘Factor Analysis on the Performance of Financial Services Innovation: Empirical Study in China’, Management of Innovation and Technology, vol. 2, no. 21 – 23, pp. 807 – 811.